Mutual Benefits’ gross premium rises by 47%

Mutual Benefits Assurance Plc’s gross written premium rose by 47 per cent in the 2021 financial period.

The Chairman of the Group, Dr Akin Ogunbiyi, disclosed this during its 26th annual general meeting in Lagos.

He said, “The Group recorded an impressive 47 per cent growth in gross premium written from N20bn in 2020 to N29.3bn in 2021. The performance was largely driven by a 52 per cent growth in GPW in our non-life insurance business, from N11.3bn in 2020 to N17.3bn in 2021.

“The Group also recorded a 40 per cent increase in net premium income from N16.1bn in 2020 to N22.5bn in 2021.”

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Ogunbiyi noted that despite the challenges in the economy, the Group’s balance sheet remained robust, with total assets of N83.8bn, an increase in insurance contract liabilities by 34 per cent from N17.6bn in 2020 to N23.5bn in 2021, and a marginal increase of six per cent in investment policies from N28.4bn in 2020 to N30.2bn in 2021.

He said the firm also increased its share capital by 80 per cent from N5.6bn in 2020 to N10bn in 2021.

An adverse claims experience and underwriting expenses resulted in their increases of 35 per cent and 31 per cent respectively, he said.

He noted that net benefits and claims increased from N8bn in 2020 to N10.8bn in 2021, while underwriting expenses increased from N4.9bn in 2020 to N6.4bn in 2021.

Despite the increases in claims and underwriting expenses, he said the group recorded an increase of 38 per cent in the underwriting profit of N5bn in 2021 as against N3.7bn in 2020.

Ogunibiyi said, “Year 2021 was quite challenging, but I have confidence in our plans to grow the business and I am delighted to share with you that our people across the group share an ambition to grow the business further. This is evident by our H1 2022 impressive performance which has been released to the public.”